Posted on: 18th Mar, 2009 04:10 am
We built a new home in 2007 which appraised for 1.3 million in 11/08 - along with the sale of two other homes plus savings we have our mortgage down to $554K. We have a HELOC for $300K and are using about $32K from it. I was wondering if it is possible to pay down the mortgage with the HELOC so the morgage is no longer a Jumbo sized loan (down to $417K) so we can refiance and take advantage of the lower interest rates out there. Is this an option worth pursuing? Thank you! Val
val, that would seem to be a viable solution. let's just say that your property value has declined by 13% to $1 million. your loan to value ratio would be 42%, and your combined loan to value ratio would be less than 60%.
assuming that your home equity lender would be willing to resubordinate, i think you've got a good plan.
assuming that your home equity lender would be willing to resubordinate, i think you've got a good plan.
yes that IS a good plan. Just wondering though....what is your current interest rate on your jumbo loan?
yes of course val, if you think it'll be easier for you to refinance a non-jumbo loan, paying down the heloc is no doubt an option worth considering. i suppose you have plans to stay in your current home for quite a good time so that you can offset the closing costs paid for the refinance with the savings due to low rate.
regards,
jessica.
regards,
jessica.
